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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

PROTOCOL

At the moment of signing the Agreement this day concluded between the Government of the Republic of Kenya and the Government of the United Arab Emirates for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following provisions which shall be an integral part of the Agreement:

(1) With respect to Article 2:

It is understood that, this Article shall not be construed to restrict in any manner any exclusion, exemption, deduction, credit, or other allowance now or hereafter accorded:

  • (a) by the laws of a Contracting State in the determination of the tax imposed by that Contracting State;
  • (b) by any other special arrangement on taxation between the Contracting States or between one of the Contracting States and residents of the other Contracting State.

(2) With respect to Article 7(1):

It is understood that, if an enterprise of a Contracting State sells goods or merchandise of the same or similar kind as those sold by the permanent establishment, or carries out business activities of the same or similar kind as those carried out by the permanent establishment, the profits of such sales or activities may be attributed to the permanent establishment if it is demonstrated that these profits are related to the activities of the permanent establishment and that such sales and activities are not meant to obtain benefits under this Agreement.

(3) For the purposes of Articles 7(1), 11(3) and 12(3):

It is understood that in the case of the United Arab Emirates, the beneficial owners of dividends and interest shall include particularly but not exclusively the State itself, political subdivision, local government, local authority, the Central Bank, pension funds, Abu Dhabi Investment Authority, Abu Dhabi Investment Council, Emirates Investment Authority, Mubadala Development Company, International Petroleum Investment Company, Dubai World, Investment Corporation of Dubai, or any other entity established by the government, a political subdivision, a local government or local authority of the United Arab Emirates.

(4) With reference to paragraph 4 of Article 14:

It is understood that paragraph 4 shall include capital gains from the alienation of shares and other corporate rights, securities, bonds and other form of debentures other than those mentioned in the paragraphs 2 and 3.

IN WITNESS WHEREOF, the undersigned being duly authorized, have signed this Protocol.

DONE in Abu Dhabi, this twenty-first day of November 2011, in the Arabic and English languages, all texts being equally authentic. In the case of divergence of interpretation, the English text shall prevail.

FOR THE GOVERNMENT OF THE UNITED ARAB EMIRATES:

OBAID HUMAID AL TAYER

MINISTER OF STATE FOR FINANCIAL AFFAIRS

FOR THE GOVERNMENT OF THE REPUBLIC OF KENYA:

UHURU KENYATTA

DEPUTY PRIME MINISTER AND MINISTER OF FINANCE